creditors breaking the law | bankruptcy attorneys in memphis

What creditors can and can’t do

Imagine what would happen if law enforcement found you lying under oath in court? You’d probably face trial for perjury, and you certainly wouldn’t win your case.

But all over the United States, creditors have been found to lie under oath when trying to collect from debtors. What’s worse, they’ve been getting away with it.

The New York Times recently reported that lenders have been suing people who owe them money without putting together proper legal arguments. In some cases, they outright lie.

The article cites a number of flaws in the way creditors take debtors to court, including:

  • Claiming the debt is thousands of dollars more than it actually is

  • Creating “robo-testimony” – or having witnesses sign affidavits without actually looking at the case

  • Taking people to court who have already paid their bills

  • Providing documents as evidence that have clear errors

In all, one judge estimates that 90% of all credit card lawsuits can’t even prove anyone actually owes the debt.

But here’s the crazy part: they’re actually winning these cases!

Lawsuits against credit card debtors have skyrocketed recently. With credit card debt, people aren’t as afraid of any immediate damage like foreclosure or repossession of their car. That means they often don’t show up for their trial, which results in a default judgement for the lenders.

In other words, if you don’t show, the creditors automatically win. Even if their case is based on a lie they can’t prove.

After a default judgement, credit card companies can get the money from you through wage garnishment or by freezing your bank account.

As bankruptcy attorneys in the Memphis area, we see their strategy play out every day. This kind of behavior takes advantage of consumers and treats credit card holders with the utmost disrespect.

Don’t let the creditors get away with it. If you’re struggling with credit card debt and facing a lawsuit, talk with our bankruptcy attorneys. We can help you figure out the system and get out of debt without any more creditor harassment.

You can call us at (901) 327-2100